EU and Japan Launch Competitiveness Alliance Amid US Trade Volatility

The European Union and Japan launched a competitiveness alliance during the 30th EU-Japan summit in Tokyo on July 23, 2025. The partnership aims to bolster trade, industrial policy, and economic security, with a specific focus on diversifying critical mineral supply chains to reduce dependency on China. The agreement includes the creation of a Japan-EU Defense Industry Dialogue, scheduled for early 2026, and the start of formal negotiations on a Security of Information Agreement.

This strategic alignment occurs as both powers navigate a global tariff offensive by US President Donald Trump. While the EU is preparing €93 billion in countermeasures against threatened 30% tariffs on its exports, Japan secured a separate trade framework with Washington. Under that deal, the US reduced tariffs on Japanese imports to 15% in exchange for a US$550 billion Japanese investment in US semiconductors and pharmaceuticals, as well as increased purchases of US rice.

Beyond trade, the summit participants issued a joint condemnation of Russia's war in Ukraine and expressed shared concerns regarding stability in the Taiwan Strait and the South China Sea. European Commission President Ursula von der Leyen and European Council President Antonio Costa traveled to Beijing immediately following the summit to mark the 50th anniversary of diplomatic relations, despite ongoing tensions over state subsidies and China's support for Russia.